ECN 202 Section 7

Autumn 2020
Assignment

Deadline: 31 December, Thursday 2020

Time: 11:55 pm
Total Marks: 20

NO LATE SUBMISSION WILL BE ACCEPTED

1. The assignment should be at least 5 pages (not more than 7 pages), excluding the front
cover and references (no need to include a table of contents)
2. Font: Times New Roman, font-size: 12; Spacing: 1.5. Submit the assignment in MS
Word format.
3. Write your name, student ID and section number clearly on the cover page
4. If you copy and paste, you will get zero (0).
5. Do not copy graphs, draw graphs using data.
6. Provide a bibliography. Use APA referencing style.

Choose a South Asian country along with Bangladesh and provide a brief economic overview of
both countries. The following indicators must be used in the assignment:

o GDP
o Inflation
o Unemployment
o Trade (export and import)

A. You need to look into the relevant information for all indicators, present the data for the
last 10 years and carry out economic analysis (graphs, trend analysis).
B. You need to interpret the analysis and interpret what the data means and the reason for
such a trend.
C. Compare the data for both the countries and discuss the reasons for the observed trends in
each country
Economic overview of Bangladesh

Bangladesh's economy is a market economy that is progressing in rapid pace. Bangladesh now
proudly stands as an evolving trade and investment sector. Bangladesh continued average
economic growth nearly 7% in the last eleven years (2008-2019),

International Monetary Fund (IMF), in its World Economic Outlook, 2018, has ranked
Bangladesh as the 44th the largest economy in the world in terms of nominal GDP in 2017 and
32nd in terms of purchasing power parity. The country registered a gross domestic product of
US$ 302.6 billion in FY 2018-19.

During this COVID-19 pandemic situation, Bangladesh's economy faced huge dropping and
growth rate decline similarly to the rest of the world. GDP growth rate of Bangladesh is around
5.2%(2019-20 FY), Bangladesh has ranked 35th in term of nominal GDP and 29th in term of
PPP

Bangladesh has achieved satisfactory foreign currency reserves which stood at US$ 32.71
billion in the fiscal year 2018-2019 and its remittances grew by 9.8 percent in this time reaching
a record of US $16.4 billion.

Economic overview of Pakistan

Bangladesh's economy is a market economy is progressing in rapid pace. Bangladesh now

proudly stands as an evolving in trade and investment sector. Bangladesh continued average
economic growth nearly 7% in the last eleven years (2008-2019),

International Monetary Fund (IMF), in its World Economic Outlook, 2018, has ranked
Bangladesh as the 44th the largest economy in the world in terms of nominal GDP in 2017 and
32nd in terms of purchasing power parity. The country registered a gross domestic product of
US$ 302.6 billion in FY 2018-19.

During this COVID-19 pandemic situation, Bangladesh's economy faced huge dropping and
and growth rate decline similarly to the rest of the world. GDP growth rate of Bangladesh is
around 5.2%(2019-20 FY), Bangladesh has ranked 35th in term of nominal GDP and 29th in
term of PPP

Bangladesh has achieved satisfactory foreign currency reserves which stood at US$ 32.71
billion in the fiscal year 2018-2019 and its remittances grew by 9.8 percent in this time reaching
a record of US $16.4 billion.
Trend of Annual GDP Growth Rate of BANGLADESH and Pakistan

Although more than half of GDP is generated through the service sector, 45% of Bangladeshis
are employed in the agriculture sector with rice as the single-most-important product. 2019, the
share of agriculture in Bangladesh's gross domestic product was 12.68 percent, industry
contributed approximately 29.65 percent and the services sector contributed about 52.85 percent.
Garments, the backbone of Bangladesh's industrial sector, accounted for more than 80%.

Decades of internal political disputes and low levels of foreign investment have led to slow
growth and underdevelopment in Pakistan. Pakistan GDP initially depends on agriculture,
fishing and mining. Agriculture accounts for more than one-fifth of output and two-fifths of
employment.The secondary sector is the industry sector. Pakistan have a well-established
services sector, tourism, financial services, or telecommunications. that contributes the lion’s
share to their GDP. In 2017,

These shifts in the respective economies will be attributed to a rise in Bangladesh's GDP of 3.8%
in 2020.ASIAN DEVELOPMENT BANK 2020 indicates that ‘’BANGLADESH gdp expected
to grow 5.2% and 6.8% in 2021.’’IMF predict that Pakistan in 2025 real gdp growth rate will be
5.024%.

Bangladesh annual gdp 288,424 million in 2018 and Pakistan gdp 314,588M$ and Bangladesh
per capita is 1,788$ and Pakistan is 1,565$. In 2018 BANGLADESH gdp growth rate increase
2.02% compare to Pakistan.
Trend of Pakistan & Bangladesh Inflation Rate

Inflatation is a tax that weaken the purchasing power of the currency. Inflation brings uncertainty
about the future, and demoralize investments in projects that raise the economy’s productive
capacity. Investor focus on projects with short-term returns, or transactions in foreign currency.

The economy of Bangladesh has been suffering from a double-digit inflation. A shortage
of oil production or energy crisis world-wide, increase in energy prices have caused
persistent inflation. The situation of

Bangladesh has been aggravated due to political problems and efforts for minimizing
corruption. these have created a supply-side problem by decreasing the productivity and
increase the cost of production.

In 2019, Bangladesh's inflation rate was 5.59 percent, a 0.05 percent increase from 2018, the
annual percentage change in the cost to the average customer of purchasing a basket of goods
and services. For 2018, Bangladesh's inflation rate was 5.54 percent, a decrease of 0.16 percent
from 2017. Bangladesh has shown a statistically significant positive long-term relationship
between the inflation rate and the GDP economic growth rate

Pakistan's economy is underdeveloped. Inflation has been moderated that coincided with
record-high international oil prices and accompanied by public or private spending booms.
Currency depreciations affect inflation similarly because it raises the domestic price of all
imported goods.As a country they face difficulties in establishing an effective and operative
monetary policy. Pakistan Inflation is caused by national debts and international lending. Their
production costs is another cause of inflation, which leads to an increase in the final price of
products.

Pakistan inflation rate was rising 1.08% in 2019 and 2018 increased by .24% Pakistan proved a
statistically significant long-term relationship between the inflation rate and the GDP economic
growth rate.

Unemployment state in Bangladesh and Pakistan

Unemployment has been the most consistent problem which is facing by all
developed as well as poor countries. Unemployment is defined as the condition
of having no job or being out of work or proportion of people which are able to
work and actively searching jobs but they are unable to find to do any certain job.

Some of the very common causes of unemployment in Bangladesh and other

developing economies are the technological changes, contribution of women in
labor force, demographic structure, economic conditions, production of
electricity. A decrease in the growth of the economies because of the economic
recession. It is a major reason of increasing rate of unemployment and a
barrier of countries development.
 Unemployment is growing by leaps and bounds not only in rural areas but also in
urban areas of Pakistan. Rapid growth in population is also one of the major
determinants of increasing the unemployment rate of Pakistan The current
economic crisis of Pakistan are huge due to this there are many trade-offs. They are
facing serious financial crisis which is resulting in a rapid increase of dollar rate
because of the insufficient balance of payments, Pakistan stock exchange is also
facing a downfall. The demand for labor has decreased. Due to the backwardness,
the industrial sector is accommodating only a small number of people.

TREND OF UNEMPLOYMENT IN BANGLADESH AND PAKISTAN

The rate of unemployment in Bangladesh dropped from 4.28 percent in 2018 to

4.19percent in 2019. On the other hand Pakistan unemployed rate 4.45% in 2019
and in 2018 its 4.28%.

In Bangladesh and Pakistan , as a proportion of the labor force, the unemployment

rate calculates the number of people actively searching for a job

UNEMPLOYMENT RATE GRAPH CHART

BANGLADESH and Pakistan import export

 Bangladesh was number 54 in total exports, the number 50 in total
imports Those product represent the highest dollar value in Bangladeshi
global shipments during 2019.Bangladesh export. Knit or crochet clothing,
Clothing, accessories Footwear Miscellaneous textiles, worn clothing
Paper yarn, woven fabric Fish Leather Headgear Raw hides, skins not
furskins, leather Plastics, plastic article. Bangladesh mainly import
Machinery and machinery, chemical products, steel & metals, cement, food
and oil products.. An import goods and service in the receiving country is
an export to the sending country

Pakistan Imports include petroleum and petroleum products, chemicals,

fertilizer, capital goods, industrial raw materials, and consumer products
Pakistan exports rice, mangoes, furniture, cotton fiber, cement, tiles,
marble, textiles, clothing, leather goods, veterinary surgical supplies, sports
goods , cutlery, surgical instruments, electrical appliances, software,
carpets, rugs, ice cream, livestock meat, chicken, powdered milk, wheat,
seafood vegetables, processed food items.

In 2019, Bangladesh exported $46.4 billion and imported $64.9 billion,

resulting in a negative trade balance of -$18.5 billion. In 2011,
Bangladesh's largest export sector was Consumer Goods, with 89.78% of
to Bangladesh experienced a year-on-year average growth rate of 108.92%
for the time period 1972 to 2019.

Among the selected countries, Bangladesh has the highest year-on-year

average growth rate at 108.92% whereas Pakistan has the lowest
year-on-year average growth rate at 22.22% exports. The value of
merchandise exports from Pakistan totalled $ 23 billion in 2019.
Merchandise exports from Pakistan increased by 0.498% compared to
2018. Goods exports grew up by $ 117 million in 2019
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